What Is CPQ, or Configure, Price, Quote?

Although configure, price, quote (CPQ) software has been available for decades, innovation in CPQ software is seen as the newest wave in sales optimization tools. But what is CPQ software? CPQ is a sales tool for companies to quickly and accurately generate quotes for orders. CPQ applications often work in tandem with CRM platforms, ERP programs, and other business technology, which helps ensure integrated data as well as accuracy. Quotes produced with CPQ software are automated according to a preprogrammed set of rules, ensuring error-free pricing that takes into account quantities, discounts, customizations, optional features of products, multiple revenue types, and incompatibilities.

What is CPQ’s main advantage?

One barrier to delivering timely quotes occurs when sales reps want to offer the customer options, configurations, or prices, but have to go digging through spreadsheets to find the right pricing rules to create the quote. CPQ avoids this conflict — with the customer and within the organization — by clearly establishing preprogrammed rules. With a CPQ application, every conceivable configuration, price, discount, and scenario can be specified, making the product configurations and options straightforward based on company capability. Then, when the rep builds the quote, CPQ walks them through the process in order to create a complete, accurate quote, using a customized template, all within minutes. It’s automatically routed to the correct parties for approval, shortening the wait time even more.